IOU Energy Efficiency Programs Collaborative
Transcript of IOU Energy Efficiency Programs Collaborative
IOU Energy Efficiency Programs
Collaborative
Christine Herbert
October 3, 2018
Energy Efficiency Implementation Project Meeting
SPEER
Our purpose is to advance the understanding and
adoption of energy efficiency as a low-cost energy
resource, and to design, implement, coordinate,
and support regional projects to promote high
energy performance and clean distributed energy
in the built environment.
PUBLIC
Winter Weather Impacts on Load by Customer Type
• Customer class breakdown
is for competitive choice
areas; percentages are
extrapolated for municipals
and co-ops to achieve
region-wide estimate
• Large C&I are IDR Meter
Required (>700kW)
• Hourly integrated demand
values
Wednesday, Jan. 17, 2018
7:15 a.m.
ERCOT Load: 65,904 MW
Temperature in Dallas: 15°Thursday, Nov. 16, 2017
7:15 a.m.
ERCOT Load: 36,795 MW
Temperature in Dallas: 63°
>29,000 MW of
weather-sensitive
load -- 44% of peak
PUBLIC
Summer Weather Impacts on Load by Customer Type
• Customer class breakdown
is for competitive choice
areas; percentages are
extrapolated for municipals
and co-ops to achieve
region-wide estimate
• Large C&I are IDR Meter
Required (>700kW)
• Hourly integrated demand
values
Thursday, Aug. 11, 2016
5:00 p.m.
ERCOT Load: 71,093 MW
Temperature in Dallas: 106°
Thursday, March 24, 2016
5:00 p.m.
ERCOT Load: 33,597 MW
Temperature in Dallas: 62°
>37,000 MW of
weather-sensitive
load -- 53% of peak
– Comfortable
– Affordable
– Durable
– Controllable/manageable
– Clean energy – zero emissions
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Benefit - Built Environment
For Customers
– Reduce Peak Demand
– Grid reliability to support growing population
– Lower Peak Demand affects customer pricing –
individually and collectively
– Reduce infrastructure cost – T&D
– Lowest Cost – Cleanest Resource
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Benefit - Energy Market
Programs Incent
• Low energy cost – good time to invest
• Low energy cost – longer ROI for customer
• Programs provide information to support good
behavior/purchasing choices
• Incentives support local businesses and reach
the smaller customers
• Provides low income opportunities
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Achievements
Average of $120 million spent per year by all IOU’s in Texas
• Saving the equivalent of around $400 million each year in future
energy and capacity costs
• 400 MW of peak demand savings per year
• 500,000 MWh of total energy savings per year (0.24% of sales)
With the states new building codes/standards – focus on
existing buildings.
EPRI study comparison with other States/Utilities?
States Targeting 100% of 2018 Economic
Potential Through Utility Programs
• Arizona
• Connecticut
• Hawaii
• Illinois
• Iowa
• Maine
• Massachusetts
• Michigan
• Minnesota
• Ohio
• Oregon
• Rhode Island
• Vermont
• Washington
Bottom 10 Performing States
Estimated Percent of Economic Potential Captured
State Percent
Texas 22%
Wyoming 20%
North Dakota 19%
Florida 17%
Delaware 16%
Kansas 11%
Alabama 10%
Virginia 8%
Louisiana 8%
Alaska 4%
Texas IOU Energy Efficiency Collaborative
Participating Organizations
• Air Conditioning Contractors of America
• Alliance for Retail Markets
• CenterPoint Energy
• CLEAResult
• Direct Energy
• EnerChoice
• Energy Foundation
• Environmental Defense Fund
• Frontier Energy
• Good Company Associates
• Houston Advanced Research Center
• Lime Energy
• Oncor
• Public Citizen
• Sierra Club
• Tetra Tech
• Texas Advanced Energy Business Alliance
• Texas Office of Public Utility Counsel
• TexEnergy
Discussion to Identify What is Possible
• Stand-alone energy goal separate from the demand goal
– No changes to the demand goal
• Modify energy goal to be a percent of annual sales
– Average savings across IOUs is currently 0.24%
– Suggest reasonably achievable energy goal of 0.5% of annual energy sales
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hCumulative MWh Savings Scenarios, using a 2017 baseline
Texas Residential and Commercial Markets
BAU EPRI Economic Potential
Energy Goal at 0.5% per year EPRI Economic Potential, IOU Portion
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Cumulative Percent of Sales Scenarios, using a 2017 baseline Texas Residential and Commercial Markets
BAU EPRI Economic Potential
Energy Goal at 0.5% per year EPRI Economic Potential, IOU Portion
Current Avoided Costs
Are there other elements that need to be included in Avoided Cost?
• Avoided Cost of Capacity = $80/kW in 2018
Based overnight cost of a new conventional or an advanced combustion turbine
• Avoided Cost of Energy = $0.03757/kWh in 2018
Based on the load-weighted average price of energy for summer and winter in all four load zones in the state.
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Demand savings compared to spending, by utility
Percent of 2017 Demand Goal Achieved 2018 EECRF Percent of Cost Cap
Demand Goal
Collaborative Discussion
What would it take to increase the energy goal?
Administrative changes
Program changes
Increased Participation – REPs and ESCOs
Cost/Cost-effectiveness changes
Can it be done through Rule?
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Percent difference a 0.5% energy goal would be from energy savings achieved in 2017, by utility
TimingCurrent Discussed
EEIP Annual 3 per year
Plans Annual 3-year – allow period of “open
enrollment” for new programs
Goal Annual Aligned with Plan
Avoided Cost Annual - 60
days ahead
Rolling 5-year avg. - established
year ahead
Cost-effectiveness 1-year 3-year to allow for ramp up of
new programs
Costs and Cost Caps
How much EE costs as percent of bill?
The average Texas resident:
$0.10 per kilowatt-hour average cost
1,171 kWh per month average consumption
$128.50 average monthly electric bill
or $1,542 annually.
EE cost is about 1% at cap. IOUs are currently spending less than
the cap. (Oklahoma Utilities get lost contribution to fixed costs and
incentive so, cost cap is equal to $2.40 per customer per month.)
Other Considerations
• Would current bonus be aligned with new goals
to keep the utilities whole?
• Rural adder of 15% - not effective.
• Develop tiered values for peak measures?
• Could some measures be compensated for both
summer and winter peak reduction?
Added Flexibility in Programs
• Consider cost-effectiveness based on portfolio,
rather than per program.
• Allow REPs to pass through incentives to
increase customer retention and enable area-
wide marketing.
• Hire third party to provide consumer marketing
without conflict of interest?
Achieve Increased Participation
• IOU consistent programs that allow multi-
service area participation? Eliminate marketing
costs
• Work with REPs to create simple, customer
access to programs
• Tiered or increased incentives
• Financing programs or on-bill repayment
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Low-income and Hard-to-reach
Differences
Current requirement is 10% of program spending ($)
And 5% of demand savings (kW) required.
Program Cost-effectiveness:• LI: Federal NEAT tool threshold is based on customer cost
effectiveness.
• HTR: incentives based on UCT like other programs
• Adjust income thresholds
• Address cost effectiveness limitations
Demand Response Programs
How much DR is the market delivering?– Summer Peak – added load 37,000MW
– ERCOT Programs include 2,242 ERS and Responsive Reserves
– REPs – using price responsive DR, which are contributing on 4CP days with TOU, Peak Rates, Block and Index Pricing
IOU Load Management provides incentives to achieve 282 MW - Not called for summer peak since 2011
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Research PotentialRequest for Information (RFI) for new programs and technologies
• Provide aggregated data for multifamily to encourage targeted programs that address split incentive
• New programs to utilize Data Access by 3rd parties
• New programs to reach off-peak customers (schools and churches)
• REP specific program design
Contact
Next SPEER IOU Collaborative meeting scheduled
for Oct. 18 from 1-4pm in Austin.
Chris Herbert Virginia Palacios
Executive Director State and Local Policy Manager
512-279-0752 512-279-0753